LBCI

Chinese money pours into Japan-focused funds, triggering risk warnings

World

23-05-2023 | 07:19

Share

Share

Chinese money pours into Japan-focused funds, triggering risk warnings

2^min

Chinese money is pouring into Japan-focused stock funds as the Nikkei hits 33-year highs, triggering repeated warnings from fund managers about market risks.

Two Shanghai-listed exchange-traded funds (ETFs) that track the Nikkei 225 Index have drawn such feverish interest, that their prices far exceed their net asset value.

The ETFs' managers, E Fund Management Co and China Asset Management Co (ChinaAMC), flagged risks to investors for the third session in a row on Tuesday.

"We caution investors to pay attention to price premium risks in the secondary market," the mutual fund companies said in separate statements.

"If investors invest blindly, they may incur huge losses."

The Nikkei has gained 19 percent this year, with foreign investors in particular attracted by strong corporate earnings and signs of economic recovery.

Chinese investors have been ploughing money into a handful of ETFs that invest in Japanese stocks under QDII, the outbound investment scheme.

The Hua An Mitsubishi UFJ Nikkei 225 ETF (513880.SS) has seen its assets under management more than double this year to 123.5 million yuan ($17.52 million).

Demand is also reflected in the price premiums of ETFs, which can be bought and sold like stocks.

The premium for the E Fund Nikko AM Nikkei 225 Index ETF (513000.SS) shot up to 23 percent last Friday, before shrinking as the fund manager issued warnings. The size of the fund has expanded by nearly 60 percent this year.

The premium for the China AMC Nomura Nikkei 225 Index ETF (513520.SS) surged to 18 percent in the secondary market on Friday.

Chinese

Money

Pours

Japan

Focused

Funds

Triggering

Risk

Warnings

Subscribe to our VOD

SUBSCRIBE

Our visitors readings

Drone attack targets US logistics center in Baghdad: AFP

Middle East News

2026-04-02

Drone attack targets US logistics center in Baghdad: AFP

Lebanon’s Health Minister tells LBCI: 89 killed, hundreds injured in Israeli strikes

2026-04-08

Lebanon’s Health Minister tells LBCI: 89 killed, hundreds injured in Israeli strikes

King Abdullah receives invitation from Trump to join Gaza Peace Council

Middle East News

2026-01-18

King Abdullah receives invitation from Trump to join Gaza Peace Council

India slashes fuel taxes due to Mideast war shortages: Finance Minister

2026-03-27

India slashes fuel taxes due to Mideast war shortages: Finance Minister

Videos

Lebanon-Israel talks: delegations arrive at US Embassy in Rome — Video

2026-08-06

Lebanon-Israel talks: delegations arrive at US Embassy in Rome — Video

Residents begin returning to Zawtar el-Gharbiyeh, southern Lebanon: Video

2026-07-24

Residents begin returning to Zawtar el-Gharbiyeh, southern Lebanon: Video

Slotkin to LBCI: Lebanese army needs resources to confront Hezbollah, $36 million request submitted for special forces

2026-07-20

Slotkin to LBCI: Lebanese army needs resources to confront Hezbollah, $36 million request submitted for special forces

Lebanon’s ambassador to Washington: trilateral framework agreement first step toward restoring sovereignty

2026-06-26

Lebanon’s ambassador to Washington: trilateral framework agreement first step toward restoring sovereignty

Rubio on Lebanon-Israel framework agreement: 'beginning of the beginning,' more work needed

2026-06-26

Rubio on Lebanon-Israel framework agreement: 'beginning of the beginning,' more work needed

Lebanon, Israel sign trilateral framework agreement after Washington talks attended by Rubio: Video

2026-06-26

Lebanon, Israel sign trilateral framework agreement after Washington talks attended by Rubio: Video

Israeli strikes renew on Choukine, Maifadoun, and Nabatieh al-Fawqa in southern Lebanon: Video

2026-06-20

Israeli strikes renew on Choukine, Maifadoun, and Nabatieh al-Fawqa in southern Lebanon: Video

Massive Israeli strikes hit South Lebanon under ceasefire conditions

2026-06-19

Massive Israeli strikes hit South Lebanon under ceasefire conditions

Trump criticizes Israel’s Lebanon campaign, says war has gone on ‘too long’ and floats Syria role in conflict

2026-06-16

Trump criticizes Israel’s Lebanon campaign, says war has gone on ‘too long’ and floats Syria role in conflict

Most read

24 hours

7 days

Month

Wanted for war crimes: Why was retired Syrian Gen. Adel Issa detained in Beirut?

1

Wanted for war crimes: Why was retired Syrian Gen. Adel Issa detained in Beirut?

Diplomacy vs. escalation: Southern Lebanon enters a critical new phase

2

Diplomacy vs. escalation: Southern Lebanon enters a critical new phase

Health Ministry: Seven killed, including three children and two women, in Israeli strike on Ansar

3

Health Ministry: Seven killed, including three children and two women, in Israeli strike on Ansar

Six killed, two injured in airstrike in southern Lebanon as displacement reported in Nabatieh

4

Six killed, two injured in airstrike in southern Lebanon as displacement reported in Nabatieh

Waste crisis or new tax? Lebanon’s environmental fee raises questions

5

Waste crisis or new tax? Lebanon’s environmental fee raises questions

Hezbollah blames Netanyahu for escalation after strikes kill 11 in south Lebanon

6

Hezbollah blames Netanyahu for escalation after strikes kill 11 in south Lebanon

Israel says Lebanon strikes a response to Hezbollah ceasefire violation

7

Israel says Lebanon strikes a response to Hezbollah ceasefire violation

Health Ministry: 11 killed, 19 wounded in Israeli strikes on Deir el-Zahrani and Ansar

8

Health Ministry: 11 killed, 19 wounded in Israeli strikes on Deir el-Zahrani and Ansar

Download now the LBCI mobile app

To see the latest news, the latest daily programs in Lebanon and the world

Google Play

App Store

Download now the LBCI mobile app

We use
cookies

We use cookies to make
your experience on this
website better.

Accept

Learn More